WORKERS nearing retirement will suffer the effects of the Bank of England’s latest economic cash injection for the rest of their lives, it is claimed.

The Bank of England looks set to pile the misery on workers nearing retirement age []

The Bank’s move, announced yesterday, to print £50billion of extra money to prop up the economy – through Quantitative Easing – will also end more final-salary pension schemes.

The painful double whammy is caused by annuity rates, which set the size of a pension’s value, being pushed down by successive injections which have now reached £325billion.

Retirees locked into a weak annuity will find that the Bank’s money printing leaves them out of pocket for the rest of their lives

Joanne Segars of the National Association of Pension Funds

QE makes it cheaper for companies to borrow by pushing down Government bond yields. But annuity incomes are also based on these yields, meaning new pensioners will see their incomes reduced. A £100,000 saving that could have realised an income of £7,855 in 2008 would yield £5,923 today.

Joanne Segars of the National Association of Pension Funds said: “Retirees locked into a weak annuity will find that the Bank’s money printing leaves them out of pocket for the rest of their lives.”